Tesla’s competitive advantage over other automakers is expected to widen, according to Garrett Nelson, vice president of equity research at CFRA Research. Ford, General Motors, and Stellantis already pay their workers more than Tesla, and this wage gap is likely to grow even with the concessions offered by these automakers. While the UAW, Tesla, and the White House did not comment on the matter, relations between Tesla and President Biden’s administration have been strained, with Tesla being snubbed from various meetings and events. However, as Biden pushes for electric vehicles to make up half of new vehicle sales by the end of the decade, there has been an increasing number of interactions with Musk and Tesla. The White House has brokered deals, supported Tesla’s charging technology, and allowed Tesla vehicles to qualify for consumer tax credits. A lengthy strike by UAW workers at other automakers could have negative effects on their ability to roll out new electric vehicle models and lower prices. Strike-induced concessions could also hinder their competitiveness as Tesla aggressively reduces prices. The Big Three automakers may lose 200,000 sales and be forced to raise prices by 2 to 5 percent in the short term due to a strike. However, a loss for the Big Three does not necessarily benefit the UAW, as Tesla has clashed with the union in the past and is known for being anti-union. Musk has appealed a ruling that accused him of illegally intimidating Tesla workers who were organizing with the UAW. Despite these issues, UAW President Shawn Fain remains focused on economic justice for working-class people.
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